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Montevideo, August 10th 2022 - 10:12 UTC

 

 

Oil trader Trafigura ex officials face corruption charges in Brazil involving Petrobras

Monday, December 17th 2018 - 08:49 UTC
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Last week, Brazilian investigators arrested eight men linked to the larger investigation of the oil traders, opening a new phase of the Car Wash probe Last week, Brazilian investigators arrested eight men linked to the larger investigation of the oil traders, opening a new phase of the Car Wash probe
Prosecutors that the charges against Mariano Marcondes Ferraz, and Marcio Pinto Magalhaes, were the first of many to come against the world’s largest oil traders Prosecutors that the charges against Mariano Marcondes Ferraz, and Marcio Pinto Magalhaes, were the first of many to come against the world’s largest oil traders
Vitol SA, Glencore Plc and Mercuria Energy Group are also under investigation in Brazil. Vitol SA, Glencore Plc and Mercuria Energy Group are also under investigation in Brazil.

Brazilian prosecutors on Friday charged two former executives of oil trader Trafigura over allegations of paying at least US$ 1.5 million in bribes to employees of Petrobras. Prosecutors said in a statement that the charges against Mariano Marcondes Ferraz, a former Trafigura top executive, and Marcio Pinto Magalhaes, a country representative, were the first of many to come against the world’s largest oil traders.

Last week, Brazilian investigators arrested eight men linked to the larger investigation of the oil traders, opening a new phase of the Car Wash probe that has brought down presidents, seen charges filed against a large swath of Brazil’s political class, sent scores of once untouchable businessmen to jail and drastically changed the political landscape of the South American country.

Vitol SA, Glencore Plc and Mercuria Energy Group are also under investigation in Brazil.

Investigators’ evidence shows that Magalhaes now works for Chinese oil firm PetroChina in Brazil. Prosecutors accused Magalhaes in an arrest warrant of continuing corrupt practices until his arrest.

Federal prosecutors accused the European multinationals and some smaller players of collectively paying at least US$ 31 million in bribes over a six-year period to employees at Petrobras, to sell them oil at sweetheart prices.

They said the firms’ top brass had “total and unequivocal” knowledge that they were fleecing Petrobras and that the illicit activity may still be going on.

Authorities say the trading companies often used freelance middlemen in an effort to cover their tracks, allowing these businessmen to negotiate deals and pay off Petrobras collaborators using bank accounts in several countries.

Emails obtained by investigators show intermediaries hustling to profit from their connections, authorities said. Some shared spreadsheets divvying up to the last cent their cut of the spoils from deals with crooked Petrobras employees.

Mercuria has denied wrongdoing. Mercuria, Vitol and Glencore said they would cooperate with the Brazilian investigation. Trafigura said it was reviewing the allegations.

Categories: Politics, Brazil.

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